In appraising, a method of estimating value based on income (cash flow). There are two basic methods available: direct capitalization, whereby value is estimated based on an analysis of a single year's income stream. Direct capitalization takes into account the effect of financing on real estate transactions, and typical expected returns to the equity position. An alternate method, called Discounted Cash Flow analysis, estimates value based on the income stream over a specific time period, plus a reversion, and discounted at a specific yield rate.